U.S. President Makes First Official Visit to the Federal Reserve in Nearly 20 Years—What Did Trump and Powell Say?

On July 24 local time, former President Donald Trump made a rare appearance at the Federal Reserve, touring its under-renovation headquarters alongside Chairman Jerome Powell. Both were seen wearing white safety helmets. According to CCTV News, U.S. media noted this was the first official visit to the Fed by a sitting or former U.S. president in nearly two decades.

CNBC reported that the visit is widely interpreted by the market as a new form of pressure by Trump on Chairman Powell, with the intent of pushing for interest rate cuts or prompting Powell to resign from his post.

During a media Q&A session, both Trump and Powell responded to inquiries concerning interest rates and whether Trump would seek Powell’s dismissal. When asked what Powell could say to have Trump retract his critical remarks, Trump stated he hoped Powell would lower interest rates. According to CCTV News, Trump suggested that a reduction of three percentage points to 1% would allow the U.S. to save over $1 trillion. He said he would observe how the committee sets rate policy.

Regarding Powell’s potential dismissal, Trump said it would be a major move but did not consider it necessary. "He took me on a tour, showed me the project… I don’t want to make it personal,” Trump said. Since returning to the White House in January, Trump has repeatedly called on the Fed to cut rates, and has even threatened to dismiss Powell, though Powell has not yielded.

On July 1, Powell stated at the European Central Bank Forum that the Fed is committed to ensuring macroeconomic, financial, and economic stability in a fully non-political manner. He emphasized that the institution does not side with, provoke, or oppose any party.

As of press time, CME Group data shows a 97.4% probability that the Fed will maintain its current interest rate in July, with only a 2.6% chance of a 25 basis point cut. For the September meeting, the probability of holding rates steady is 38%, while the chance of a 25 basis point cut stands at 60.4%.

On June 18 local time, the Fed left the federal funds target rate range unchanged at 4.25%–4.5%, in line with market expectations, marking the fourth consecutive meeting without a rate adjustment. The Fed’s July policy meeting is scheduled for July 29–30.

During the same media session, questions were raised concerning the cost overruns associated with the renovation of Federal Reserve buildings—an issue Trump has recently highlighted in his criticism of Powell. Trump claimed that the renovation cost for two Federal Reserve buildings had exceeded $3.1 billion and handed Powell a document.

In response, Powell said he had not previously heard any concerns regarding this matter. After quickly reviewing the document, he explained that the new expenditures were mainly related to a third building that had been completed several years ago.

Later that day, Trump posted on social media that it was an honor to tour the site with Powell. He acknowledged the cost overruns but added, “On the bright side, our country is doing so well that it can afford just about anything—even this building.”

Earlier, officials from the White House had raised questions about the project. On July 10 local time, Russell Vought, Director of the Office of Management and Budget, criticized Powell via social media, stating that the Fed had failed to address the fiscal situation and instead pursued costly renovations of its Washington, D.C. headquarters. Vought noted the renovation costs had surged to $2.5 billion, exceeding the original estimate by approximately $700 million.